Tip Changes - WSVN-TV - 7NEWS Miami Ft. Lauderdale News, Weather, Deco

Tip Changes

Posted: Updated:
Tipping Tipping

A lot of restaurants in South Florida include the tip in your bill. But that practice may change in the next year because of new tax rules. 7's Lynn Martinez explains in tonight's Money Monday.

WSVN -- They are the people in charge of making sure your dining experience is great, and they work hard for their money.

Waiters and waitresses are paid below minimum wage with the bulk of their pay coming from customer tips.

Oscar Melgar, server, Cafe Prima Pasta: "The tip is reflected on your performance on the table, so sometimes it can be very good, other times it can be misunderstood by the customer as well."

Because South Florida gets so many foreign visitors, some restaurants here automatically add the tip to the bill.

Henry Villar, bartender, Cafe Pasta Prima: "The tourists, they come in, and they have a different philosophy, and they don't tip you, but they don't know ... They come from a different culture or tradition, and they don't do it."

But, come Jan. 1, many restaurants may drop the automatic tips because of a new IRS rule.

Giuseppe Marino, general manager, Cafe Prima Pasta: "So, I can see many different restaurants doing away with the policy altogether, just because of the work that's involved."

Starting Jan. 1, tips added directly to the bill will be considered "non-tip wages," which means restaurants will have to report that income to the IRS and pay social security, medicare and federal income taxes on that money.

And since the amount will be different every night, depending on how big the tabs are, it could mean mounds of paperwork.

Marino: "You know, it will be two different structures of payment and taxable income."

Of course, servers count on the added tips and are worried the IRS ruling will affect their paycheck.

Villar: "At the end, it's money. I'm a family person, so everything I make, I contribute to the future of my kids, try to build a better future."

But they hope the customers will continue to show their appreciation through good tipping.

The IRS is also targeting delivery charges for pizza, luggage assistance, even bottle service charges.

  • Help Me HowardMore>>

  • Finding a Burglar

    Finding a Burglar

    Monday, July 21 2014 11:39 PM EDT2014-07-22 03:39:48 GMT
    Loretta Clark's diamond necklace.Loretta Clark's diamond necklace.
    When his wife passed away, he was devastated. Today he feels even worse, because a necklace she loved, that was left for him, was stolen by a crook who broke into his home. So many people in South Florida are crime victims, but what can you do? It's why he called Help Me Howard with Patrick Fraser.
    When his wife passed away, he was devastated. Today he feels even worse, because a necklace she loved, that was left for him, was stolen by a crook who broke into his home. So many people in South Florida are crime victims, but what can you do? It's why he called Help Me Howard with Patrick Fraser.
  • Still Paying Debt 15 Years Later

    Still Paying Debt 15 Years Later

    Wednesday, July 16 2014 11:04 PM EDT2014-07-17 03:04:13 GMT
    In 1999, she was a teenager who had a car accident. A judge hit her with a judgment to pay for the other drivers medical bills. For 15 years off and on she has paid that judgment and today found out she owes more than the original debt, even though she has paid nearly the amount owed. Is that legal? It's why she called Help Me Howard with Patrick Fraser.
    In 1999, she was a teenager who had a car accident. A judge hit her with a judgment to pay for the other drivers medical bills. For 15 years off and on she has paid that judgment and today found out she owes more than the original debt, even though she has paid nearly the amount owed. Is that legal? It's why she called Help Me Howard with Patrick Fraser.

  • Not Square

    Not Square

    Monday, July 14 2014 11:26 PM EDT2014-07-15 03:26:20 GMT
    The Square cell phone device allows small business owners to swipe customers' credit cards.The Square cell phone device allows small business owners to swipe customers' credit cards.
    If you are self-employed or run a small business, you may be a person who uses the small device that attaches to your phone so your customers can pay with their credit card. It's incredibly convenient, but did you know they can hold your money for months and not tell you why? Is it legal? It's why one person called Help Me Howard with Patrick Fraser.
    If you are self-employed or run a small business, you may be a person who uses the small device that attaches to your phone so your customers can pay with their credit card. It's incredibly convenient, but did you know they can hold your money for months and not tell you why? Is it legal? It's why one person called Help Me Howard with Patrick Fraser.
  • Carmel on the CaseMore>>

  • Former State Corrections Officer Cleared in Shooting Death Outside Bar

    Former State Corrections Officer Cleared in Shooting Death Outside Bar

    Tuesday, July 8 2014 10:34 PM EDT2014-07-09 02:34:21 GMT
    Tonight there's a decision on whether to charge a former state corrections officer who shot and killed a man outside of a bar. Was it murder, manslaughter, or self defense? Investigative reporter Carmel Cafiero broke the story and is back On the Case.
    Tonight there's a decision on whether to charge a former state corrections officer who shot and killed a man outside of a bar. Was it murder, manslaughter, or self defense? Investigative reporter Carmel Cafiero broke the story and is back On the Case.
  • Highway Hazard: FHP Investigates Rocks Thrown at Cars on Turnpike

    Highway Hazard: FHP Investigates Rocks Thrown at Cars on Turnpike

    Tuesday, July 1 2014 11:55 PM EDT2014-07-02 03:55:52 GMT
    Tonight, a warning for drivers along a portion of Florida's Turnpike: Rocks are being thrown at cars. Now, authorities are targeting those behind this "Highway Hazard." Investigative reporter Carmel Cafiero is On the Case.
    Tonight, a warning for drivers along a portion of Florida's Turnpike: Rocks are being thrown at cars. Now, authorities are targeting those behind this "Highway Hazard." Investigative reporter Carmel Cafiero is On the Case.
  • Paying the Price for Exploiting the Elderly

    Paying the Price for Exploiting the Elderly

    Tuesday, June 24 2014 11:38 PM EDT2014-06-25 03:38:11 GMT
    66-year-old William Tinnell66-year-old William Tinnell
    A longtime South Florida criminal is on his way to state prison tonight. He has admitted he took advantage of elderly homeowners by charging big bucks for bogus yard work. Investigative reporter Carmel Cafiero first broke the story, and is back on the case with the conclusion.
    A longtime South Florida criminal is on his way to state prison tonight. He has admitted he took advantage of elderly homeowners by charging big bucks for bogus yard work. Investigative reporter Carmel Cafiero first broke the story, and is back on the case with the conclusion.
  • Medical ReportsMore>>

  • Tiny Tools

    Tiny Tools

    Friday, July 18 2014 5:51 PM EDT2014-07-18 21:51:25 GMT
    Doctors know operating on children is different than on adults. Now thanks to some tiny tools, life-saving surgeries can be done on even the smallest patients. 7's Diana Diaz shows us.
    Doctors know operating on children is different than on adults. Now thanks to some tiny tools, life-saving surgeries can be done on even the smallest patients. 7's Diana Diaz shows us.
  • Erase The Ink

    Erase The Ink

    Friday, July 11 2014 5:37 PM EDT2014-07-11 21:37:24 GMT
    Removing a tattoo isn't always quick and easy, but a new laser treatment is promising results with fewer treatments. 7's Diana Diaz shows us a breakthrough way to erase the ink.
    Removing a tattoo isn't always quick and easy, but a new laser treatment is promising results with fewer treatments. 7's Diana Diaz shows us a breakthrough way to erase the ink.
  • Caressa's Courage

    Caressa's Courage

    Friday, July 4 2014 5:38 PM EDT2014-07-04 21:38:41 GMT
    A 4-year-old girl is facing an uphill battle as she recovers from surgery to remove a tumor on her spine. See how physical therapy designed just for kids is helping her. 7's Christine Cruz shows us "Caressa's Courage."
    A 4-year-old girl is facing an uphill battle as she recovers from surgery to remove a tumor on her spine. See how physical therapy designed just for kids is helping her. 7's Christine Cruz shows us "Caressa's Courage."
  • Money MondaysMore>>

  • Pet Medical Costs

    Pet Medical Costs

    Monday, July 21 2014 5:52 PM EDT2014-07-21 21:52:54 GMT
    Many of us have pets in our homes, but most of us don't know that everyday items in our houses can be hazardous to them. In tonight's Money Monday, we show you some of the biggest hazards to your pet and your wallet.
    Many of us have pets in our homes, but most of us don't know that everyday items in our houses can be hazardous to them. In tonight's Money Monday, we show you some of the biggest hazards to your pet and your wallet.
  • Student Loan Debt

    Student Loan Debt

    Monday, July 14 2014 5:38 PM EDT2014-07-14 21:38:03 GMT
    The excitement of college graduation has come and gone for many students facing repaying student loans. In tonight's Money Monday, we have some pointers to get that student loan debt in check.
    The excitement of college graduation has come and gone for many students facing repaying student loans. In tonight's Money Monday, we have some pointers to get that student loan debt in check.
  • Dynamic Pricing

    Dynamic Pricing

    Monday, July 7 2014 5:44 PM EDT2014-07-07 21:44:23 GMT
    Does it sometimes feel like just when you really need to buy something online the price goes up? In tonight's Money Monday, Lynn Martinez has more on negotiating around the tricks of online retailers.
    Does it sometimes feel like just when you really need to buy something online the price goes up? In tonight's Money Monday, Lynn Martinez has more on negotiating around the tricks of online retailers.
Powered by WorldNow

WSVN-TV
Sunbeam Television Corp
1401 79th Street Causeway
Miami, FL 33141

Switchboard: (305) 751-6692
Newsroom: (305) 795-2777

Can't find something?
Connect with us here:
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WSVN. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.